India's passenger vehicle segment recorded highest-ever sales in 2024
What's the story
India's passenger vehicle (PV) segment, which comprises cars, utility vehicles, as well as vans, has set a new record by selling 4.3 million units in 2024.
This marks a healthy growth of around 4.2% over the previous year.
The sales surge was mainly led by a stellar performance from the SUV category.
Sales breakdown
SUV sales boost PV segment performance
The utility vehicle segment, which comprises SUVs, witnessed a significant 17% jump in sales to 2.7 million units.
Meanwhile, passenger cars witnessed a 14.4% decline, with the sales falling to 1.37 million units.
Despite the fall, the PV segment performed strongly overall owing to the strong demand for utility models.
Year-end boost
December sales and industry outlook
In December, the PV segment saw a strong 10% growth in wholesales. The spike was due to discounts by original equipment manufacturers (OEMs) and their attempts to clear inventory ahead of 2025.
Shailesh Chandra, President of the Society of Indian Automobile Manufacturers (SIAM), said, "2024 has been reasonably good for the auto industry."
Segment performance
Two-wheeler segment drives auto industry growth
Chandra emphasized that the growth in 2024 was largely propelled by the two-wheeler segment, which witnessed a remarkable 14.5% growth over the previous year, with sales of 19.5 million units.
He also mentioned that passenger vehicles and three-wheelers recorded their highest-ever sales in a calendar year, adding to the overall growth of the auto industry.
Quarterly results
Q3 sales and commercial vehicle performance
For the October-December quarter, PVs, commercial vehicles (CVs), and three-wheelers recorded their highest-ever sales for a Q3.
SIAM Director General Rajesh Menon revealed, "Passenger vehicles grew by 4.5% in Q3 of 2024-25, with sales of 1.06 million units compared to the previous year."
However, CVs saw a minor decline of 2.7% in 2024 with sales standing at 950,000 units despite growth signs being visible in Q3.